New Stamp Duty, Staircasing.

berniebeyer

Hello,

Does anyone know if we will benefit on the new stamp duty on our staircasing remortgage?

We are staircasing up to 100%, our solicitor is claiming she is unsure whether we are likely to benefit so she is recommending we pay the larger amount.

Thanks

Bernie

kingstreet

You'll need to read this;-

http://www.hmrc.gov.uk/sdlt/calculate/shared-ownership.htm

and ask HMRC if you have specific questions.

berniebeyer

Thanks kingstreet.

I have previously looked at that site. I know I've got to pay some stamp duty. My staircasing purchase is £160,000, so I thought I was going to pay £1,600. Now however I may only have to pay £700, but my solicitor is unsure. I'm due to complete next week and would much rather have the £900 in my pocket this side of christmas rather than get a refund from HMRC in a few months!!

Cheers

Mortgage_Mark_2

When you originally bought the share, did you make a 'Market Value Election'? When buying shared ownership you can either pay SDLT on the share you're purchasing or make an election to pay SDLT on the whole value from that day, if you're intending to staircase?

I would imagine that if you haven't you pay it based on whatever share you are now buying, and if you did, don't worry about it as it's already paid?

It depends on what you did when you bought the property.

berniebeyer

Hi Mark,

We didn't make any original payment, so we are definately due to pay some SDLT.

Thanks

Mortgage_Mark_2

Ah, then in that case I would give HMRC a call to check how they are going to calculate it - what's the overall value now?

berniebeyer

Total value is £245,000 the extra bit we are buying is valued at £160,000

amnblog

berniebeyer wrote: »

We are staircasing up to 100%, our solicitor is claiming she is unsure whether we are likely to benefit so she is recommending we pay the larger amount.

I recommend she pays the larger amount if she cannot be bothered to find out.

flossiecrossie

Just on the off chance anyone sees this & can help..

My husband bought 50% shared ownership in 2004 - the value of the property £120000 (under the Stamp Duty threshhold). We together will complete a 100% staircasing this week. The property is now worth £160000.

On a new purchase of £160000 under new guidelines we would need to pay £700. However, given the fact when the initial 50% was bought when in 0% rate band is stamp duty now due?

Appreciate any help? The HMRC's website is of little use.

Thanks